BNPL users can bring complaints to the Financial Ombudsman from 15 July 2026

Consumers can bring eligible complaints about buy now pay later (BNPL) agreements to the Financial Ombudsman Service from 15 July 2026, the Ombudsman said, if they cannot resolve the matter with their provider¹. The same date is when the Financial Conduct Authority began regulating Deferred Payment Credit (DPC), the interest-free form of BNPL repayable in 12 or fewer instalments over 12 months or less².

The Ombudsman can look at a complaint if the agreement was taken out on or after 15 July 2026³. Complaints it lists as within scope include an application declined unfairly, charges the borrower was not aware of or believes are incorrect, incorrect information on a credit file, payment already made but still demanded, returning faulty goods, and mis-selling, including where terms were not explained clearly or the borrower was pressured into the agreement³. Small businesses with problems over merchant services such as payment settlements or chargebacks are also covered³. Before coming to the Ombudsman, a consumer should complain to the company; if there is no final response within eight weeks, or the response is unsatisfactory, the complaint can go to the Ombudsman³. The service is free³.

The FCA said lenders must be authorised by it, or be part of its temporary permissions regime, to keep offering DPC². Its rules require lenders to check whether a borrower can afford to repay before an agreement is taken out, and to give information beforehand including the amount borrowed, repayment dates and amounts, any late fee, and the rights and protections available². If a repayment is missed, firms must contact the borrower and explain what it means². The FCA lists 15 lenders registered under the temporary permissions regime, including Clearpay (Clearpay Finance Ltd), PayItMonthly (PayItMonthly Ltd), PollenPay (PollenPay UK Ltd) and several credit unions². Firms in that regime must follow the FCA's rules for DPC agreements entered into from 15 July².

Not all BNPL is regulated. Agreements are regulated where the lender and the supplier of the goods or services are different businesses; where the same business provides both, the agreement is not regulated². Any DPC agreement taken out before 15 July 2026 remains unregulated and the new protections do not apply to it². Which? reported that the new rules only apply to agreements taken out from 15 July 2026, and that existing agreements continue under the previous rules⁴. It also reported the Ombudsman expects around 2,000 BNPL complaints this financial year⁴.

Section 75 of the Consumer Credit Act 1974 applies to newly regulated BNPL agreements, making the lender jointly liable with the retailer for eligible purchases between £100 and £30,000⁵. The FCA said this is the same protection available when paying by credit card². The Ombudsman said it received 8,500 complaints about Section 75 and chargeback in the last financial year, 1 April 2025 to 31 March 2026¹.

Why it matters for households

The change affects people who take out BNPL agreements from 15 July 2026, not those with agreements already running². For new agreements, a borrower who is unhappy with how a lender handled an application, charges, credit file information or a faulty purchase can escalate the dispute to the Ombudsman after the lender has had eight weeks or has given a final response³. The Ombudsman can tell a lender to put things right if it believes money has been lost, and may order compensation for distress or inconvenience³. Lenders must now assess affordability before lending and provide set information upfront, and must contact borrowers who miss a repayment². Purchases between £100 and £30,000 made under a regulated agreement carry Section 75 rights against the lender as well as the retailer⁵. The FCA has said the new protections do not apply to agreements taken out before 15 July 2026².

What happens next

Firms registered under the FCA's temporary permissions regime have six months from 15 July 2026 to apply for full authorisation, according to the Credit and Consumer Trade Association⁶. The FCA has said it plans to consult later on a mandatory reporting requirement for BNPL lenders to report to credit reference agencies⁶. The Ombudsman has not reported a closing date for BNPL complaints beyond the requirement that the agreement was taken out on or after 15 July 2026³.